Report on the Budget 2012 Consultations

FIRST REPORT FOURTH SESSION THIRTY-NINTH PARLIAMENT Report on the Budget 2012 Consultations Select Standing Committee on Finance and Government Services NOVEMBER 2011 November 15, 2011 To the Honourable Legislative Assembly of the Province of British Columbia Honourable Members: I have the honour to present herewith the First Report of the Select Standing Committee on Finance and Government Services. The Report covers the work of the Committee in regard to the Budget 2012 public consultations. Respectfully submitted on behalf of the Committee, Rob Howard, MLA Chair Table of Contents Composition of the Committee ......................................................................................................................... i Terms of Reference ........................................................................................................................................... ii Letter from the Chair ...................................................................................................................................... iii Executive Summary .......................................................................................................................................... v Budget 2012 Consultation Process ................................................................................................................... 1 Budget 2012 Consultation Paper .................................................................................................................. 1 Consultation Methods .................................................................................................................................. 2 Results of Budget Consultations ................................................................................................................... 3 Meetings Schedule........................................................................................................................................ 4 Part 1: Competitiveness, Jobs, and Economic Growth – Maximizing Opportunities in the Natural Resources Sector............................................................................................................................................................ 5 Streamlining Permitting Processes and Regulations ...................................................................................... 5 Bridging the Skills Gap ................................................................................................................................ 7 Investing in Northern Development ........................................................................................................... 10 Promoting BC Agriculture ......................................................................................................................... 13 Recommendations ...................................................................................................................................... 14 Part 2: Programs and Spending Priorities ........................................................................................................ 17 Maintaining Health Care ........................................................................................................................... 17 Funding K-12 Education............................................................................................................................ 20 Strengthening Post-secondary Education .................................................................................................... 23 Resourcing Community Services ................................................................................................................ 27 Enhancing Court Services ........................................................................................................................... 29 Recommendations ...................................................................................................................................... 31 Part 3: Fiscal Management .............................................................................................................................. 34 Staying the Course ..................................................................................................................................... 34 Revising Tax Policy .................................................................................................................................... 35 Recommendations ...................................................................................................................................... 40 Part 4: Other Budget Priorities ....................................................................................................................... 42 Recommendations ...................................................................................................................................... 44 Summary of Recommendations ...................................................................................................................... 46 Appendix A: Public Hearings Witness List ...................................................................................................... 51 Appendix B: Written Submissions .................................................................................................................. 57 Appendix C: On-line Survey Responses .......................................................................................................... 59 Composition of the Committee Members Rob Howard, MLA Chair Richmond Centre Doug Donaldson, MLA Deputy Chair Stikine Bill Bennett, MLA Kootenay East Mable Elmore, MLA Vancouver-Kensington Dave S. Hayer, MLA Surrey-Tynehead Pat Pimm, MLA Peace River North Bruce Ralston, MLA Surrey-Whalley Bill Routley, MLA Cowichan Valley Dr. Moira Stilwell, MLA Vancouver-Langara Jane Thornthwaite, MLA North Vancouver-Seymour Clerk to the Committee Susan Sourial, Committee Clerk Research Staff Josie Schofield, Manager, Committee Research Services Byron Plant, Committee Research Analyst Jennifer Ives, Morgan Lay, Gordon Robinson, and Timothy Scolnick, Committee Researchers Select Standing Committee on Finance and Government Services i First Report, November 2011 Terms of Reference On June 2, 2011 and again on October 3, 2011, the Legislative Assembly agreed that the Select Standing Committee on Finance and Government Services be empowered: 1. To examine, inquire into and make recommendations with respect to the budget consultation paper prepared by the Minister of Finance in accordance with section 2 of the Budget Transparency and Accountability Act and, in particular, to: a. Conduct public consultations across British Columbia on proposals and recommendations regarding the provincial budget and fiscal policy for the coming fiscal year by any means the committee considers appropriate, including but not limited to public meetings, telephone and electronic means; b. Prepare a report no later than November 15, 2011 on the results of those consultations. In addition to the powers previously conferred upon the Select Standing Committee on Finance and Government Services, the committee shall be empowered: a. to appoint of their number, one or more subcommittees and to refer to such subcommittees any of the matters referred to the Committee; b. to sit during a period in which the House is adjourned, during the recess after prorogation until the next following Session and during any sitting of the House; c. to adjourn from place to place as may be convenient; and d. to retain personnel as required to assist the Committee, and shall report to the House as soon as possible, or following any adjournment, or at the next following Session, as the case may be; to deposit the original of its reports with the Clerk of the Legislative Assembly during a period of adjournment and upon resumption of the sittings of the House, the Chair shall present all reports to the Legislative Assembly. ii Select Standing Committee on Finance and Government Services First Report, November 2011 Letter from the Chair We are living in unprecedented economic times. Global economic events will present strong headwinds for Canada and British Columbia. Governments around the world who have not been fiscally responsible have been punished. Look to our good neighbours to the south and to Europe – Greece in particular. British Columbians are fortunate that through years of strong fiscal management the provincial government has rebuilt our credit rating to AAA. The Province is committed to a balanced budget in 2013/14 and has maintained a net government debt-to-GDP ratio of less than 20 percent. To understand the significance of this, Canada’s net government debt-to-GDP ratio is 34 percent, in the United States it is 61 percent and in Greece it is 148 percent. In our travels we found that citizens were optimistic and willing to roll up their sleeves and start working. They want to work with government to create a better and sustainable future for their families. In challenging financial times British Columbians are reminded of the strong role personal responsibility plays in their lives. It is increasingly evident that government cannot be everything to everybody. It takes strong families to build strong communities. British Columbians are also reminded of the great value provided by the not-for-profit sector and by volunteers. As the Select Standing Committee on Finance and Government Services travelled the province, we heard

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